Russian President Vladimir Putin attends the plenary session of the Eastern Economic Forum September 7, 2022 in Vladivostok, Russia. Contributor/Getty Images
Russia’s isolation from the world economy led to low attendance at Putin’s economic forum in St. Petersburg.
The event previously attracted big names from the west, but this time it was mainly lower-ranking politicians.
Experts have sounded the alarm for the Russian economy in view of the war sanctions against Ukraine.
Vladimir Putin’s main business forum this year saw low turnout – another sign that Russia’s war on Ukraine is isolating the country from the world economy.
Although Russia’s annual event in St. Petersburg had previously attracted big names like French President Emmanuel Macron and then-German Chancellor Angela Merkel, Wednesday’s event failed to attract such figures.
Western politicians were largely absent, and even countries that were once neighbors of the Soviet Union were absent, Bloomberg reported.
Most in attendance were low-ranking politicians from the Middle East, Latin America and Asia – regions that Russia has grown closer to economically as Western sanctions have cut it off from traditional trade routes.
The most notable attendees were officials from China, including Zhang Hanhui, China’s Ambassador to Moscow, and Zhou Liqun, Chairman of the Union of Chinese Entrepreneurs in Russia.
Russia significantly increased its trade ties with China over the past year, with officials pledging to forge a “borderless” partnership and boost trade volumes between the two countries to a new record in 2023.
But experts warn that the rift between Russia and the western world could be deadly for the Russian economy. Despite the country’s staunch resistance, the sanctions are straining Moscow’s finances as oil and gas revenues plummet by 50% and the country’s budget deficit widens. And while Russia has expanded trade with China and other allies, some experts say it may sacrifice independence to do so.
Though some forecasters think Russia’s economy will see little growth this year, those estimates are largely based on stats “raisin-picked” by the Kremlin, according to two Yale researchers, who recently argued that Russia’s economy is far stronger is struggling than Putin has admitted until now. The nation could even become a failed state within the next decade, a think tank estimates.
Read the original article on Business Insider